Business

Dodd Admits Creating Bonus Loophole

Senate Banking Committee Chair Chris Dodd has had better days. Looks like the AIG bonus scandal just found a political whipping boy:

Dodd just admitted on CNN that he inserted a loophole in the stimulus legislation that allowed million-dollar bonuses to insurance giant AIG to go forward â€“ after previously denying any involvement in writing the controversial provision.

â€œWe wrote the language in the bill, the deal with bonuses, golden parachutes, excessive executive compensation that was adopted unanimously by the United States Senate in the stimulus bill,â€ Dodd told CNNâ€™s Wolf Blitzer this afternoon.

â€œBut for that language, there would have been no language to deal with this at all.â€

Dodd had previously said that he played no role in writing the controversial language, and was not a part of the conference committee that inserted the language in the bill.

I like the â€œBut for that languageâ€ part of the quote. If Dodd thought the language was good, he wouldnâ€™t have hid from his involvement in it. Heâ€™ll have a hard time defending his role now. Sure, a lot of people voted for the bill, but the â€œI didnâ€™t read that partâ€ excuse is better than the â€œI wrote that part and then denied and am now hoping it all goes awayâ€ excuse.